From The New York Times:
“Ben S. Bernanke, chairman of the Federal Reserve, told Congress on Thursday that the economy was going to get worse before it got better, a message that received a chilly reception from both Wall Street and politicians.”
From The Telegraph:
“Mr Bernanke, speaking before the joint economic committee of Congress, said while the most recent economic date suggested a resilient economy, growth will slow into next year as the US housing crisis intensifies.
He said in the week since the Fed cut US base rates by 25 basis points: ‘the few data releases that have become available have continued to suggest that the overall economy remained resilient in recent months.’ However, he said, ‘financial market volatility and strains have persisted. Incoming information on the performance of mortgage-related assets has intensified investors' concerns about credit market developments and the implications of the downturn in the housing market for economic.’”
“The U.S. economy is in for a rough winter and a better spring, Federal Reserve Chairman Ben Bernanke told congress today.
The moderate 3.9% gross domestic product growth rate of the economy in the third quarter will slow in the months ahead, amid turmoil in the housing and credit markets and rising energy prices.”